Access Bank Plc has entered into an agreement to acquire the sub-Saharan subsidiaries of Standard Chartered Bank, marking a significant development in the banking sector.
Under the acquisition deal, Standard Chartered will transfer its shareholding in subsidiaries located in Angola, Cameroon, Gambia, and Sierra Leone to Access Bank. Additionally, Access Bank will take over Standard Chartered’s consumer, private, and business banking business in Tanzania.
Last year, Standard Chartered had announced its intention to withdraw from seven countries in Africa and the Middle East (AME) as part of its strategy to enhance profitability by focusing on high-growth markets within the region.
Sunil Kaushal, Regional CEO for Africa and the Middle East at Standard Chartered, commented on the deal, stating:
“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential”
“Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries”
The agreement is in line with Standard Chartered’s global strategy “aimed at achieving operational efficiencies, reducing complexity, and driving scale,”
It is understood that the deals are subject to regulatory approvals in Nigeria as well as other countries that Standard Chartered operates in.
Also commenting on the acquisition, the MD of Access Bank, Roosevelt Ogbonna said: “With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments,”
This acquisition is coming on the back of Access Bank acquiring a majority equity stake in Finibanco Angola
Access Holdings had completed the acquisition of the bank after receiving regulatory approval from the Central Bank of Nigeria as well as Angolan Competition Authority.
Commenting on the completion of the acquisition, the Group CEO of Access Holdings, Dr. Herbert Wigwe said: “In anticipation of the completion of the transaction the Bank has made excellent progress in integration planning. We plan to leverage our expansive distribution network, best-in-class technology, risk and governance practices to serve high-growth businesses and the rising consumer sector in Angola.
“We will act as a positive catalyst to foster greater innovation and promote the deepening of the financial sector in Angola in line with our strategic growth objectives in the broader South Africa Development Community while delivering value to our stakeholders.
